Congratulations on your graduation; welcome to life.  For the last several years you’ve been insulated from reality by the protective cocoon of a college or high school campus.  While you’ve toiled with academic duties, chances are you’ve done little toiling with many of life’s harder lessons.

In the coming decade you will be faced with challenges and hardships that you probably have been ill-prepared to handle.  That is more of a condemnation of our overall “wussification” as a society than a knock against educators, who for the most part do a good job of working within nearly impossible restraints. Despite their best efforts, there were a few things that were left out of the syllabus on life.

I don’t have all the answers, but I’ve made my share of mistakes.  It is my hope that by sharing them here at Frugal Dad at least a few of you will avoid repeating them.  So on this graduation day, a day of celebration and reminiscing, keep the the following lessons in mind.

10 Lessons For New Grads

1. Your diploma is worthless.  It is a piece of paper.  It will soon be mounted in an expensive frame and proudly displayed on a wall somewhere in corporate America. It is the knowledge that you gained, and the experiences you’ve collected, that are invaluable.

2. It’s OK to lose.  You are too young to remember keeping score.  When I was a kid we had winners and losers, champions and second place.  Now everyone gets a trophy just for participating.  Losing teaches humility.  Embrace it, learn from it, but don’t make it a habit.

3. You cannot borrow your way to prosperity.  Sure, some have borrowed money to start something and had success in spite of leveraging their future, but most people crash and burn.  Go slow.  Save your money and build your idea with your own cash.  You’ll spend smarter with your own money.

4. It is time to take better care of yourself.  No more all-nighters. The time has come to take care of yourself.  Take it from someone who has largely ignored his own advice for the last decade, putting other priorities ahead of his own health.  Make taking care of yourself priority one.  Trust me, you’ll save money on insurance, health care, and enjoy a better quality of life.

5. Save for sunny days. By now you’ve had the idea of saving for a rainy day beaten into you. It’s good advice, but don’t forget the sunny days, too.  Save on purpose. Whatever that purpose is – a hobby or skill you’d like to learn, or a trip you’ve always wanted to take – save for it and pay cash. Remember, life is meant to be enjoyed.

6. There is nothing wrong with renting. Resist the temptation to run out and buy a house. There is no shame in renting.  In fact, there are many advantages to renting.  It makes sense for new graduates unsure about where they plan to work and live, and who they might plan to share their lives with going forward.  When you have a huge emergency fund saved, and the time is right, buy a modest home and pay it off quickly.

7. Save half your income. I don’t have regrets, but if I could do one thing over in my life I would save 50% of my income from the first day I entered the work world. Doing so ensures one year of freedom outside of the work world.

8. A used car does not always represent “someone else’s problem.” Despite our automotive advances over the last thirty years or so, I still routinely hear this excuse for avoiding used cars. There is nothing wrong with a good used car. Have a mechanic check it out, buy it, and drive it until the wheels fall off.

9. Some people will earn more than you for doing the same job. Now that you have a degree you probably feel like you should be at the top of the salary scale. Wrong. There are people who have been out there hustling since you were in diapers (or before), and even though they don’t have a degree, they have decades of real-world experience.  Don’t resent them; learn from them.

10. Stand behind your beliefs, especially when they are unpopular. You are an individual, with an individual set of beliefs.  Never let anyone take that away from you.  It is not popular these days to stand up for what you believe in, but unless you stand for something, you will fall for anything.

Extra credit:  You are not finished learning.  Learning is a life-long endeavor, and to quit now would mean short-changing yourself some sixty or seventy years. Continue to read books, study subjects you are curious about, and challenge yourself to broaden your horizons. Formal education is now behind you, but a world of opportunity to learn more is now in front of you.

Looking for a place to sell back your textbooks?  Try Cash4Books-Quick Cash, Free Shipping, Free Quotes

If you are not currently a member of Sam’s Club, now may be a good time for a trial membership.  Between now and June 7, 2009, sign up for a Sam’s Club trial membership for $15 and enjoy membership benefits until Labor Day.

My wife and I are already Sam’s Club members, and shop there roughly once a month to stock up on a few things.  You have to be a little careful when shopping at wholesale clubs – you can wind up spending a lot more money on things you don’t necessarily need.  I’ve been known to buy the occasional box of 100 hot and spicy frozen chicken wings – not a very frugal purchase.  Still, if you have some restraint, you can find a few great deals over grocery chains.

Five Best Things to Buy at Sam’s Club

Gasoline.  A lot of people forget about Sam’s Club when it comes time to fill up their tank.  In our area, Sam’s consistently beats the price of most of other gas stations.  We try to take advantage by planning our monthly shopping trip around time to fill up.

Digital Photo Prints.  Upload digital 4×6 prints over the Web and have them printed at your local Sam’s Club for about $0.13 a copy.  Considering the cost of photo paper and ink, this is not a bad deal for printing a handful of your favorite vacation photos!

Furniture.  We bought our current mattress at Sam’s Club a couple years ago, and have been eying a kitchen table set (ours badly needs replacing).  When our “furniture” sinking fund has enough we plan to shop Sam’s Club versus an expensive furniture store. One note, you do typically have to put the table legs, chair legs and backs on yourself, but a little sweat is worth the savings.

Tires. I always shop the prices at Sam’s Club before buying new tires. Unless I am looking for a specific brand, or a unique tire size (I’m usually not very picky), I can find a good deal at the local Sam’s Club automotive area.

Jewelry.  Sam’s frequently has excellent deals on jewelry, particularly if you are in the market for a ring.  Why pay jewelry store prices if you don’t have to?

Chances are, you can easily make back the $15 summer membership fee by Labor Day, particularly if you just happen to be in the market for a big purchase or would like to stock up before next fall.

“I’m bored!”  It’s the two words every parents dread as school lets out for summer.  Fear not; I’ve put together two weeks worth of fun summer activities to keep kids busy, and parents sane.

The list of summer activities ranges in cost from free to frugal, but each requires extra quality time with kids – something we can all afford to spend more on!

14 Fun, Frugal Summer Activities

Day 1. See a “one dollar” movie at the theater. Many theater chains around the country offer summer movie programs for kids where they offer a “one dollar” movie every day for a week, or on a particular day of the week all summer.

Day 2. Sprinkler day.  Delay your sprinklers for one day so they come a little later in the morning.  This way everyone can get on their bathing suits and have fun jumping through the sprinklers on a hot day.  But not for too long!  This is a good time to teach them about conserving water, reducing utility costs, etc.

Day 3. Attend “story time” at your local library.  My kids love to check out books on all kinds of subjects.  My son currently has three library books on swimming, pirates and going to the dentist (quite a diverse reader, huh?).  Many libraries also have a story time to encourage a summer reading program.  Stories are read out loud and the kids have a chance to interact with the story-teller and answer questions about the book.

Day 4. Set up a lemonade stand. This is probably my favorite idea because of the lessons in entrepreneurship involved.  Loan your kids $10 as “seed money” for supplies, or better yet, let them use their own money from savings.  This way they don’t get used to the idea that borrowing leads to prosperity.  Take the kids along to the grocery store one morning and let them pick up the lemons, sugar, cups, and a couple bags of ice to keep in a cooler.  Yes, Crystal Light lemonade works, too, but is less authentic and more expensive.  This is a great way for neighborhood kids to work together, as they can divide into teams to man the lemonade stand, make the lemonade, handle the money, etc.  Please remember that an adult needs to be with the kids at all times, both inside and outside the house, so have a neighbor help.

Day 5. Teach your kids to fly a kite. Check your 10-day forecast and look for a windy day in the coming week.  Pick up an expensive kite for the kids.  I even recommend springing for the extra spool of kite string on a roller because the string and handles that come with the kites are lousy.

Day 6. Make homemade play-doh.  I haven’t run a cost analysis on this recipe to determine it’s “frugalness,” but I can tell you it is a lot of fun!  I suppose the next best option would be to pick up some commercial Play-Doh on sale, but what fun would that be?

Day 7. Bake a cake.  I remember having a ball helping my mom bake something when I was young.  And not all the fun came at the end when I got to lick the icing from the bowl!  Let your kids help bake a cake, and surprise mom or dad when they arrive home that afternoon.

Plenty of teachable moments here with opportunities to teach fractions (four 1/4 cups equals one cup, etc.).  By the way, my wife made this pirate birthday cake for my son’s birthday last week.  Arrrgghhh!

Day 8. Build a “fort” in the living room.  When my son was smaller he got the biggest kick out of playing in giant cardboard boxes.  We would color them, and cut “windows” out for him to look through.  A living room “fort” could be as simple as a few kitchen chairs gathered in a circle with a large bed sheet thrown across them and draped to the floor.  The kids can hide from mom and dad, read books, or pretend they are camping out in the living room.

Day 9. Go bowling. My grandfather and I spent many hot, summer afternoons bowling a couple games at the local bowling alley.  These days, bowling can be an expensive activity.  Call the lanes ahead of time and ask if they have any summer specials (certain days may be cheaper). Also check those coupon mailer packs for coupons for free games.  To keep costs down, just let the kids bowl – you can work on your game another time.

Day 10. Declare a “bored” game day. I learned to play chess, checkers, backgammon, and poker (my mom wasn’t thrilled with that) one summer while staying with my grandparents.  Few kids today don’t realize you can play games without a computer.  Most of these old board games are inexpensive in their basic form – skip the “deluxe” edition to save even more.

Day 11. Have a water balloon fight.  My son attended a birthday party recently and the parents had filled several dozen mini balloons with water.  The kids participated in games like a water balloon toss – they start close together, but take a step back with each toss to increase the distance.  The last one to break the balloon is out.  With that was left, the kids had an all-out water balloon battle.  Lots of fun, but be sure to pick up the balloon remains, especially if you have very little ones or pets as they could be a choking hazard.

Day 12.  Create a “mini-me.” Find a piece of large poster board, or large heavy-duty paper (such as a butcher paper) wide enough for your kids to lay down on.  Use a dull pencil (less chance for boo-boos) to trace their entire body to the paper from head to toe.  Now let the kids decorate the kids to look like themselves in the same clothes they are wearing, same color eyes, hair, etc. When they are finished, help them cut out their mini-me for proud display.

Day 13. Pajama day.  I feel like having these days as an adult!  Stay in your pajamas all day long.  Make pancakes in the morning, bake a pizza for lunch, and lounge around watching movies.  Use your Netflix subscription to have a couple kid-friendly movies on hand.

Day 14. Spend a day volunteering your time. A good way to wrap up your two-week blitz of summertime fun is to allow your kids to donate their time to a worthy cause.  Contact a few local charities and find out which ones will allow kids to volunteer some time over the summer (under your supervision).  My daughter has worked with Project Linus in the past – an organization that makes blankets for children who’ve suffered a traumatic experience.

So there you have it; fourteen days of frugal summer fun!  I’d love to hear your ideas as well.

Photos courtesy of StormyDog, rochelle, et. al, Mrs. Frugal, daveparker, skennel

“Listen to advice and accept instruction, and in the end you will be wise.” -Proverbs 19:20

The weakest part of each person is where he or she thinks himself or herself the wisest. In the words of the great basketball coach John Wooden, “It’s what we learn after we think we know it all that really counts.” Those who are teachable and continually seek to improve and grow rarely contract the disease of pride.

Benjamin Franklin taught, “An investment in knowledge always pays the best interest” (Complied by Rev. Frederick S. Sill, A Year Book of Colonial Times, (New York: E.P. Dutton and Company, 1906) p. 15). Education and transportation are tools that get us to our destination. Over the years transportation has moved from the horse and buggy to trains, cars, and airplanes. Each new mode of transportation has enabled us to reach our destination in a shorter period of time. In the 1800s it took months to cross the plains to the west. Today, with improved tools, we can make the same journey in a matter of hours. Education is also a tool that can speed up your journey to financial independence and prosperity. Studies of those with a high net worth have revealed that they spend significant time each month on financial education (Thomas J. Stanley, William D. Danko, The Millionaire Next Door, (New York: Simon & Schuster, 1996) p. 48, 71).  Studies also show there is direct correlation between the amount of time spent on financial education and net worth. The more you learn, the more you earn.

General Edward Braddock

During the French and Indian War, the British General Edward Braddock, age 60 at the time, employed the help of a Virginia militia. When one of the young 23-year-old Virginian soldiers who was well acquainted with the Indian mode of warfare modestly offered his advice, the haughty Braddock said, “What! An American buskin teach a British General how to fight!” (B.J Losing, Signers of the Declaration of Independence, (New York: George F. Colledge & Brother, 1848) p. 167). Braddock did not heed the advice and the British suffered a disastrous defeat and General Braddock was wounded by a shot through the right arm and into his lung. Following the injury to General Braddock, that same 23-year-old, with no official position in the chain of command, was able to lead and maintain some order and formed a rear guard, which allowed them to evacuate and eventually disengage. This earned him the title of “Hero of the Monongahela.” General Braddock was carried off the field by George Washington, the soldier whose advice he had rejected. Braddock died on July 13, 1755, four days after the battle. Before he died, Braddock left Washington the blood stained sash of his uniform. Washington carried the sash with him for the remainder of his life. Perhaps he carried the sash as a reminder of the cost of pride and of the necessity of being humble and teachable if he was to be successful in his efforts. Had Braddock listened to the advice of young George Washington, his life may have been saved.

George Washington was teachable and spent time each day reading. During his lifetime, Washington accumulated a library of more than 700 books, a great many which he studied closely. Washington’s step-granddaughter, Nelly Custis, wrote to one of Washington’s early biographers saying, “It was his custom to retire to his library at nine or ten o’clock, where he remained an hour before he went to his chamber. He always arose before the sun, and remained in his library until called to breakfast.”

This was a guest post by Cameron C. Taylor, author of the book Does Your Bag Have Holes? 24 Truths That Lead to Financial and Spiritual Freedom. www.DoesYourBagHaveHoles.org

What a difference a few decades makes!  In the 1980’s capitalism was on the march as many technological advances were made.  An entrepreneurial spirit spread across the country.  That carried over into the 1990’s, and went into overdrive in the mid-to-late 90’s, where there were plenty of examples of on-paper employee millionaires thanks to hot IPOs, and “irrational exuberance” in the technology sector, particularly biotech companies.

Throughout this period the idea of frugal living was but an after thought, and those who practiced it were made fun of mercilessly.  We were labeled tightwads, cheapskates, and other not-so-polite terms of fiscal endearment.  After all, people were too busy comparing their net worth to try to save a buck.

Enter the recession of 2008.  Suddenly, frugal living made a comeback.  It seemed the cover story of every major media publication featured some variation of “ways to save money” or “ways to survive the recession,” or proclaimed the reemergence of frugality.  Now (some of) those same people scrambling for bigger houses, fancier cars and higher capital gains are trying to out-do one another again by scrimping, sacrificing, and poking fun at people’s purchases.  Nothing is ever frugal enough.

Sometimes the act of scaling back is traumatic enough to a family’s finances–cutting things altogether would send them over the edge.  Take my family for instance.  Last year we decided to go one year without expanded cable television service.  I wanted to cancel completely.  My wife and kids pointed out the number of educational shows we could watch on PBS, and the poor signal reception we would get from an antennae.  We compromised, and decided to drop back to basic cable, reducing our cable bill from $46 a month to $12 a month.  We made similar compromises in other areas of our budget.  At the end of the year, we decided to resume expanded cable and cut other subscriptions and forms of entertainment.

Here lately, I’ve noticed a shift in public sentiment towards frugality, and I suspect it may be a form of frugal burnout.  When people get burned out with a trend in their own lives, they tend to resent others who they perceive to be sacrificing less than them.  Many people are made to feel guilty if they are not practicing a frugal lifestyle.  Others are so condemned for spending money that they are literally ashamed to be seen with bags from high-end stores.  Give me a break.  Have we really come to that?

First of all, frugality is not a competition.  People have different levels of tolerance for all things frugal.  Some people like air conditioning, others enjoy working on classic cars.  They choose to spend their money on things that others perceive to be frivolous.  But that is simply a personal opinion, and how you choose to spend your money says more about your personal values than your level of commitment to the frugal living movement.

Of course, many of us practice frugality for reasons besides monetary gain.  We enjoy simple living, and believe in being wise stewards of resources (natural, economic, etc.).  But what you choose to do with your money is up to you.  Bottom line:  Please don’t become a self-righteous frugalist!

Are you guilty of hanging on to things that you don’t use because of the belief that you “might need it someday?” It’s a common problem that leaves people dealing with a bunch of clutter.

This is especially a problem for people who are trying to save money because they believe that as soon as they get rid of the item they’re going to need it and they’ll have to go out and pay cash to replace it. The truth is that you rarely ever need this stuff and you may be losing money by keeping it.

Here are five good reasons that it just doesn’t make sense to save stuff for “someday”:

1.  It takes up room. You have to find a place for every extra item that you have. Many people have storage rooms, garages, attics, extra bedrooms and even full storage lockers filled with stuff. If you didn’t have stuff in here, you could make use of those areas and maybe even make some money off of them. You could rent out the extra bedroom or the added parking space to people who would use them. You could use those spaces as an office and get a tax break when you’re working from home or give up your art studio and work from the attic. Instead you’re just filling that space up with stuff.

2.  It takes up time. Imagine how much time you’d have if you added up all of the time that you spend sorting through your junk to find what you need, organizing it, moving it around the house (or from an old house to a new one) and cleaning it off when it gets filthy. That’s leisure time that you’re wasting right now.

3.  You end up with doubles. People think that they’ll save things for that one day when they need them but what ends up happening with people who have too much stuff is that they don’t even remember what they have. When they need something, they go out and buy another anyway because they’ve forgotten that they already have what they need (or they know they have it but can’t remember where it is). Then you have twice the junk!

4.  You can get cash for it now. A lot of the stuff that you never use could be turned into cash that you can use today. Sell it. If you really need it again later then you can always buy a replacement and consider yourself financially even.

5.  Reducing clutter reduces stress. Don’t you feel better when there’s less clutter around you? When your desk is all cleared off and your inbox is empty, your mind feels clearer. Imagine taking all of the things that you don’t need and just getting rid of them. You’re de-cluttering your life and it feels good!

This was a guest post by Kathryn Vercillo. Kathryn is a writer for Promotionalcodes.org.uk which gives away free promotion code deals (like this hotels.com discount code) and also publishes a frugal blog.

Before we get into the roundup this week I wanted to share a little site news.  Over the next few weeks I’m going to be experimenting with a revised blogging schedule (beginning next Monday).  I plan to publish both a morning and afternoon post each weekday, and continue my tradition of posting a lighter post on Saturday.  I may take Sundays off, or I may share an inspirational post if I have something in mind.

If you follow Frugal Dad via email, you’ll notice that on days I publish two articles you will receive one email with both posts (don’t forget to scroll down after the first article).  If you follow in a feed reader, or by bookmarking the site, you can simply check in any time to see what’s new.

One disclaimer:  Please don’t feel pressured to keep up with every single post.  I know many of you are comfortable with a once-a-day schedule.  In fact, 90% of the blogs I follow keep this schedule, and as a reader I admit to not following each article from those that post more frequently.  Still, I have a small handful of favorites that post twice a day, and I always look forward to both posts.  I hope you’ll consider me in that category, too.

I’m open to any feedback you have on this schedule, so feel free to comment or drop me a line any time.  Now let’s get on with the roundup, shall we?

The Fab Five

Debt Tsunami: The Ultimate Method For Paying Off Debt.  This is a debt snowball post on steroids!  But what else would you expect from “Man vs. Debt?”  I like the idea of any debt snowball plan prioritizing human emotion over interest rates, because those same emotions that got you in the mess have to be repaired in order to get you out.  (@ Man vs. Debt)

The Credit Cardholders’ Bill of Rights Act of 2009 Is Here: What Does It Mean For You – And What Might It Mean for the Future? I was planning to do a post on this one, and still might, but Trent covered the topic so well I thought I would just share his thoughts.  The “under-21″ clause has many people upset, and while I basically agree with anything that limits the use of credit by young people, I think this may be taking regulation a bit too far.  Not every 19 year-old deserves the extra scrutiny required to obtain credit, but some level of scrutiny should be required of a lender extending credit to anyone at any age…shouldn’t it?  (@The Simple Dollar)

Roth 401(k) – Frequently Asked Questions.  Imagine taking the best aspects of the 401(k) and the Roth IRA and combining them into one investment vehicle.  That’s almost what you get with the Roth 401(k), and this post answers some of the most frequent questions on the topic.  (@ Money Smart Life)

Travel Full-time for Less Than $14,000 Per Year.  This post had shades of The 4-Hour Workweek, and I loved it!  Not necessarily because I am able to implement any of these ideas with a wife and two small kids, but because it really gets you thinking outside the box.  Bonus:  Some pretty good travel tips included as well!  (@ I Will Teach You To Be Rich)

Child Proof Your Electrical Outlets to Cut Energy Costs.  From the “every little bit helps” pile comes this ingenious post from Kerry.  One could easily add these insulating foam gaskets to every outlet in their house for just a few bucks and a little time.  Bonus:  Kerry recently announced she’s authored a new book–397 Ways to Save Money.  Congratulations!  (@ Squawk Fox)

Best of the Rest

• Case Study: 60 Years Old, Lots of Cash, No Portfolio – The Income
• SmartMoney 2009 Best & Worst Online Brokers
• Small Business ARC Loan Arbitrage
• Making Money With a Credit Card
• Friends’ Influence and Money: A Two Way Street
• Where to Go for Help With Getting Out of Debt – Credit Counseling and More
• Have A Mind For Business? Entrepreneurs Think Differently!

Carnival Participation

• Carnival of Homesteading: Vegetable Gardening Edition
• 178th Festival of Frugality
• Carnival of Pecuniary Delights

Since I haven’t mentioned it in a while, did you know you can receive free, daily updates from Frugal Dad directly to your inbox.  Simply sign up for a free email subscription, or follow along in your favorite feed reader.